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Simple Interest, SMB-016

Kate and Amberley are Swifties and want to travel to Melbourne to go to a Tay-Tay concert.

It will cost them a total of $13 000 for tickets, accommodation and transport.

They currently have $12 500 and can invest this amount for 9 months.

What is the minimum simple interest rate, correct to 1 decimal place, at which they can invest their money to reach their goal of $13 000?   (3 marks)

--- 6 WORK AREA LINES (style=lined) ---

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`5.4\text{%}`

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`n = \frac {9}{12} = 0.75`

`text{Interest required to reach goal} =13\ 000-12\ 500=$500`

`I` `=Prn`
`500` `=12\ 500 xx r xx 0.75`
`r` `=500/9375`
  `=0.05333…`
  `=5.333…\text{%}`

 
`:.\ text{Minimum interest rate = 5.4%}`

Filed Under: Simple Interest Tagged With: num-title-ct-corea, smc-4332-20-Find interest rate

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